Valley
Land Company LLC

Hamilton County, Tennessee

On April 3, 2009, TVA issued a finding of no significant impact
(FONSI) on a proposal by the Valley Land Company LLC of Chattanooga,
Tennessee, to encapsulate a 460-foot section of an unnamed perennial
tributary to Isbill Branch. Isbill Branch is a tributary to
Black Creek near Tennessee River Mile 459.9, left bank, in Hamilton
County, Tennessee. The proposed encapsulation and subsequent
fill would allow the developer to improve his property for the construction
of a contiguous building pad for future light commercial development. In
addition, the proposed action would include restoration of a portion
of Isbill Branch and the preservation of other segments of Isbill
Branch as compensatory mitigation.

TVA approval under Section 26a of the TVA Act and U.S. Army Corps
of Engineers (USACE) approval under Section 404 of the Clean Water
Act are required for this proposal. TVA adopted a final environmental
assessment prepared by the USACE, which evaluated the proposed stream
encapsulation and fill and which addressed compensatory mitigation
of the proposed action. TVA’s FONSI is presented below.